What is the NSF check fee or failed electronic fund transfer fee for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $500 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
| NSF Check Fee or Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law | On demand | Payable if your bank account possesses insufficient funds and/or fails to process a payment or transfer related to a fee due from you to us. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee's bank account has insufficient funds or fails to process a payment or transfer related to a fee owed to Casiola, the franchisee will be charged a fee. This NSF check fee or failed electronic fund transfer fee will be the greater of 5% of the amount due or $50.
The fee is due on demand, meaning Casiola can require immediate payment. The FDD also notes that the fee will not exceed the maximum fee allowed by law, which means that the actual fee charged may vary depending on applicable state and federal regulations.
It is important for prospective Casiola franchisees to maintain sufficient funds in their designated bank accounts to avoid incurring these fees. Franchisees should also be aware of the due dates for all fees and payments to Casiola to prevent failed electronic fund transfers. Franchisees should consult with legal and financial professionals to understand the implications of these fees and ensure compliance with all applicable laws.